US stocks were mostly higher after a volatile late-afternoon trade as the release of the Federal Reserve's minutes from its January meeting showed policymakers thought pausing on US interest rate hikes posed little risk.
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The minutes also showed many participants were not yet clear what adjustments to rates might be required later in the year.
"The minutes largely echoed the Fed's cautious statement from its last meeting," Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington, said.
"I get the sense that rates are on hold until later this year. ... But the Fed stopped well short of closing the door to a rate hike later this year."
The US central bank surprised markets last month by suspending a three-year campaign to raise rates, saying it would be patient about making any adjustments to its target range for short-term interest rates, now at between 2.25 per cent and 2.5 per cent.
A dovish Fed and progress in US-China trade negotiations have helped the S&P 500 rise about 18 per cent from its lows in December.
The S&P materials index rose 1.9 per cent, leading percentage gains among the major 11 S&P sectors.
Investors also took in more news on the trade front, with President Donald Trump on Wednesday saying the United States would impose tariffs on European car imports if it cannot reach a trade deal with the European Union.
The Dow Jones Industrial Average rose 53.96 points, or 0.21 per cent, to 25,945.28, the S&P 500 gained 4.12 points, or 0.15 per cent, to 2,783.88 and the Nasdaq Composite dropped 4.26 points, or 0.06 per cent, to 7,482.51.
On Tuesday, Trump said trade discussions with China were going well and suggested he was open to extending the deadline to complete the negotiations, saying March 1 was not a "magical" date.
Australian Associated Press
